What's a Krugerrand

Gold Coin?

You may already know that South Africa is one of the world's largest
gold producing countries. So, it is logical for them to try to
increase interest in their product..... gold!

Krugerrand beginnings

In 1967 the South African government found a way to increase investor
interest in South African gold, by using their gold to mint a new type
of gold bullion coins. Their strategy: Include a full ounce in
each coin, charge a very small premium to make them, promote and
advertize their new bullion gold coins.... and the Krugerrand gold coin
was born!

Investors around the world discovered that buying a Krugerrand was a
good way to purchase gold and have it in their possession. In the
1970's US citizens were again allowed to purchase gold bullion coins.
(US citizens were forbidden to buy or own bullion gold after their gold
bullion was confiscated in the early 1930's.)

Various sizes of Krugerrands

The
kruggerand became the first modern-era bullion gold coin. Prior to
this time gold coins made by world mints were of various odd sizes.
Eventually the South African government began making smaller size coins
in addition to the 1 ounce Krugerrand. Today you can buy gold
Kruggerands in 1 ounce, half ounce, fourth ounce and tenth ounce sizes.

Photo of a tenth oz Krugerrand gold coin

Facts about the Krugerrand

The Krugerrand is named for Paul Kruger, the last president of the
Republic of South Africa. The coin features a portrait of Kruger
on one side and an interesting rendition of a Springbok antelope on the
other. Each coin will show the amount of gold it contains in small
print under the antelope design. (For an example, see the photo
above.)

The krugerrand, like many other countries gold coins, actually contains
other metal besides gold to give the coin a hardness, so that it can
withstand wear and handling. Krugerrands are .916 fine, which
means that they are 91.60% pure gold. For example, a 1 ounce
krugerrand will have a full troy ounce of gold in it, plus about 8%
copper. If you weigh one, you'll find it weighs about 8% over a
troy ounce (due to the added copper). When you buy a krugerrand
you're getting a full ounce of gold, plus a little copper for free!

Consequently, the color will have a very slight copper tint to it.

Krugerrand Dimensions

Coin Size

Diameter

Thickness

One ounce

32.6

2.75

Half oz.

27.0

2.25

Fourth oz.

22.0

1.85

Tenth oz.

16.5

1.20

All sizes are approximate, and rounded to the nearest
tenth of a millimeter.

Other popular gold coins

Other popular gold bullion investor coins include the Canadian Maple
Leaf, the American Gold Eagle, Mexican gold pesos, the Australia Kangaroo and lunar gold
coins, and the Austria Philharmonic gold coins.